There are a number of sales methods you can choose from when selling your home. It’s important you talk to your real estate agent as to which method they believe is right for you and your property in order for you to achieve the highest sales price. Certain areas and certain properties within an area will achieve better results when sold via private treaty vs auction and vice versa. So make sure you do your research and talk to your agent about the best method of sale for your property.
The three main methods are:
Selling by Auction
An auction is a private sale held at a specific place, time and date following a marketing campaign over several weeks. A licensed real estate agent will conduct the auction which is governed by strict rules and regulations. These differ in each state and territory so to find out what they are for your area click here.
An auction by nature creates urgency as there is a definitive time in which the buyer must act or they risk losing their opportunity to buy the property. Setting an auction date groups all interested buyers together at the one time, creating a competitive environment and the greatest chance to achieve the highest possible price. The theory of an auction is that your home will sell at true market value at that particular time.
Once the hammer falls, the property is sold and there is generally no cooling off period for the buyer or the seller. Buyers need to conduct building inspections and ensure their finance is approved prior to bidding at the auction. If the property fails to sell at auction, you can continue marketing the property with an asking price. It is likely that one of the buyers, often the highest bidder will come forward and negotiate a sale with the agent on your behalf.
Selling by Private Treaty
This is when you, the home owner, set the price tag you would be willing to acceptyou’re your property. Your real estate agent will then negotiate with each and every interested party, trying to find a willing buyer who will meet your nominated price or as close to it as possible.
In general, sale by private treaty gives the seller greater control over the sale, more time to consider offers by potential purchasers and the ability to extend the time the property is listed on the market. Plus potential purchasers must make offers on your property ‘blind’, this means without knowing what other buyers are willing to pay.
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Sale by Expressions of Interest (EOI)
Sale by Expressions of Interest (EOI) is when you invite buyers to submit an offer to purchase your property by a specified time and date. Each potential purchaser puts forward their best and final offer (in writing).
Generally your property will be on the market for 4-6 weeks to enable you to promote your property effectively and to ensure ample time is given for buyers to look through the home, finalize their finance and determine the price they are willing to pay.
At the end of the sale period the vendor will review submissions and choose the expression of interest that interests them the most. If an acceptable offer is not found by the vendor, the property may be placed on the market as a private treaty sale or EOI’s may be called again.